When a Firm Needs to Raise Money Via a Bond

question 19

Multiple Choice

When a firm needs to raise money via a bond issue,one of the quickest ways is through a ________.This activity involves the purchase of a large block of securities by a large institutional investor such as a pension fund,an endowment fund,or an insurance company.

• A)private placement.
• B)public placement.
• C)secondary offering.
• D)none of the above.

---

Definitions:

Material Purchases

The total cost of raw materials acquired for use in the production process.

Est. Cost of Goods Sold

An estimated figure representing the cost directly associated with the production of the goods sold by a company.

Selling Price

The amount of money a seller charges for a product or service.

Credit Sales

Transactions where goods or services are sold and payment is delayed, typically recorded as accounts receivable.